Question 2 CLO (1) (4 Marks) Suppose the following information was reported by Gap, Inc. Working...

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Question 2 CLO (1) (4 Marks) Suppose the following information was reported by Gap, Inc. Working Capital Total assets (millions) 2017 2016 $7,065 2015 2014 2013 $7,985 $7,564 Current Ratio $1,831 $7,838 $8,544 $2,533 $1,847 $1,653 $2,757 1.87:1 Debt to Assets Ratio 2.19:1 1.86:1 1.68:1 2.21:1 .42:1 39:1 Earnings Per Share 42:1 45:1 39:1 $1.89 $1.59 $1.35 $1.05 $0.94 a) Determine the overall percentage decrease in Gap's total assets from 2013 to 2017. What was the average decrease per year? b) Comment on the change in Gap's liquidity. Does working capital or the current ratio appear to provide a better indication of Gap's liquidity? What might explain the change in Gap's liquidity during the period? c) d) Comment on the change in Gap's solvency during this period. Comment on the change in Gap's profitability during this period. How might this affect your predication about Gap's future profitability? Question 2 CLO (1) (4 Marks) Suppose the following information was reported by Gap, Inc. Working Capital Total assets (millions) 2017 2016 $7,065 2015 2014 2013 $7,985 $7,564 Current Ratio $1,831 $7,838 $8,544 $2,533 $1,847 $1,653 $2,757 1.87:1 Debt to Assets Ratio 2.19:1 1.86:1 1.68:1 2.21:1 .42:1 39:1 Earnings Per Share 42:1 45:1 39:1 $1.89 $1.59 $1.35 $1.05 $0.94 a) Determine the overall percentage decrease in Gap's total assets from 2013 to 2017. What was the average decrease per year? b) Comment on the change in Gap's liquidity. Does working capital or the current ratio appear to provide a better indication of Gap's liquidity? What might explain the change in Gap's liquidity during the period? c) d) Comment on the change in Gap's solvency during this period. Comment on the change in Gap's profitability during this period. How might this affect your predication about Gap's future profitability?